Share Name Share Symbol Market Type Share ISIN Share Description
Angling Direct Plc LSE:ANG London Ordinary Share GB00BF1XGQ00 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  3.50 5.04% 73.00 72.00 74.00 73.00 69.50 69.50 28,225 16:13:07
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Leisure Goods 67.6 2.6 3.3 21.9 55

Angling Direct PLC Full Year Results

11/05/2021 7:00am

UK Regulatory (RNS & others)

Angling Direct (LSE:ANG)
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From Apr 2021 to Jul 2021

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RNS Number : 1481Y

Angling Direct PLC

11 May 2021

11 May 2021

Angling Direct plc

("Angling Direct" the "Company" or the "Group")

Full Year Results

Delivering profitable growth in a year of significant strategic and operational progress

Angling Direct plc (AIM: ANG), the leading omni-channel specialist fishing tackle and equipment retailer, is pleased to announce its Full Year results for the 12 months ended 31 January 2021 ("FY21").

Financial Highlights

   --      Group revenue increased 27.1% to GBP67.6m (FY20: GBP53.2m) 

-- Online sales up 39.9% to GBP35.3m (FY20: GBP25.2m), with international sales accounting for 12.4% of total online sales

-- Retail store sales up 15.5% to GBP32.3m (FY20: GBP27.9m), despite impact of national lockdowns

-- Gross profit of GBP23.1m, up 39.5% (FY20: GBP16.6m) with a 300bps improvement in gross margin to 34.2% (FY20: 31.2%), underpinned by more disciplined approach to pricing and inventory management

   --      Operating cashflow up 825% to GBP6.9m 
   --      EBITDA (post IFRS 16) of GBP5.7m (FY20: GBP0.7m) 
   --      Profit before tax of GBP2.6m, up 279% (FY20: (GBP1.5m loss)) 
   --      Basic earnings per share of 3.33p (FY20: (2.03p loss)) 
   --      Strong balance sheet with Group net cash of GBP15.0m at 31 January 2021 

Operational Highlights

-- Web platform upgrade delivering new and improved customer journey functionality across UK and international websites (.uk, .de, .fr, .nl)

-- Online direct wage cost efficiency improvement of 240 bps to 3.6% of sales alongside distribution centre reconfiguration

-- Four new stores opened (Warrington, Bristol, Northampton, Leicester) in strategically located, high density fishing catchments, bringing store estate total to 38 at period end (FY20: 34)

   --      Post period-end opening of new Redditch store (February) and Sittingbourne re-sited (April) 

-- Growing contribution from higher margin own brand Advanta range, representing 4.8% of total sales (FY20 2.8%)

-- Became exclusive retail partner of Angling Trust's Get Fishing campaign; at least two Angling Trust qualified fishing coaches now in each store

-- Key hires within growth critical areas of Web development, Technology, Buying, Finance and Operations

Current Trading and Outlook

-- Strong Q1 FY22 sales, up 54% on the prior year, reflecting closure periods in both years. Online sales up 42%, store sales up 75%

-- Focused internationally on five key growth territories; Germany, France, Netherlands, Belgium and Austria

-- Assuming no further lockdowns, the Group is well-placed to deliver profitable growth in revenues, albeit at a lower rate than the prior year as trading conditions and sales mix begin to normalise

   --      Financial guidance reinstated for FY22, on track to meet current year market expectations 
   --      Cash at 30 April 2021 GBP15.5m 

-- Martyn Page to move from Executive Chairman to Non-Executive Chairman, Darren Bailey stepping down as Non-Executive Director at forthcoming Annual General Meeting

Andy Torrance, CEO of Angling Direct, said:

"In a year characterised by the unique challenges associated with the pandemic, I am extremely proud of the way our people responded to help deliver such a strong Group performance. We made great strides with our strategic and operational objectives, growing revenues both in the UK and key European territories, driving operational excellence across the business and delivering sustainable margin-accretive, profitable growth as part of our laser-focus on pricing and inventory management. As the health and wellbeing benefits of angling become more widely recognised and its popularity grows around the world, we are ideally positioned to fulfil our ambition of becoming Europe's first choice omni-channel fishing tackle destination for all anglers, regardless of their experience or ability.

Having reopened our stores on 12 April and with the UK emerging from the pandemic, I am cautiously optimistic when I look to the future: the strong foundations we have put in place through 2020 will ensure the Group is able to take advantage of the numerous opportunities that will arise through the remainder of 2021 and beyond."

Analyst Webinar

A virtual meeting for sell-side analysts will be held at 09:30am (UK) today, 11 May 2021, the details of which can be obtained from FTI Consulting using the contact details below.

Investor presentation

Andy Torrance (CEO) and Steven Crowe (CFO) will provide a live presentation relating to the Full Year Results via the Investor Meet Company platform on Monday 17 May at 10.30am. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9.00am the day before the meeting or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet Angling Direct via: . Investors who already follow Angling Direct on the Investor Meet Company platform will automatically be invited.

For further information please contact:

 Angling Direct plc                   +44 (0) 1603 258658 
 Martyn Page, Executive Chairman 
  Andy Torrance, Chief Executive 
  Steven Crowe, Chief Financial 
 N+1 Singer - NOMAD and Broker        +44 (0) 20 7496 3000 
 Peter Steel, Alex Bond (Corporate 
  Tom Salvesen (Corporate Broking) 
 FTI Consulting - Financial PR        +44 (0) 20 3727 1000 
 Alex Beagley                
  James Styles 
  Alice Newlyn 

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

About Angling Direct

Angling Direct is the leading omni-channel specialist fishing tackle retailer in the UK. The Company sells fishing tackle products and related equipment through its network of retail stores, located strategically throughout the UK as well as through its leading digital platform ( .de, .fr and .nl) and other third-party websites.

Angling Direct is committed to supporting its active customer base and widening access to the angling community through its passionate colleagues, store-based qualified coaches, social media reach and ADTV YouTube channel. The Company currently sells over 20,000 fishing tackle products, including capital items, consumables, luggage and clothing. Angling Direct also owns and sells fishing tackle products under its own brand 'Advanta', which was formally launched in March 2016.

From 1986 to 2002, the Company's founders acquired interests in a number of small independent fishing tackle shops in Norfolk and, in 2002, they acquired a significant premise in Norwich, which was branded Angling Direct. Since 2002, the Company has continued to acquire or open new stores, taking the total number up to 38 retail stores. In 2015, the Company opened a 30,000 sq. ft central distribution centre in Rackheath, Norfolk, where the Company's head office is also located. Angling Direct has an established, and rapidly growing, presence in Europe with native language websites set up in key regions to address demand.

Chairman's Statement

Introduction and Board changes

I am pleased to present a successful performance, but I do so with somewhat mixed emotions as I reflect on the challenges that have impacted so many over the past year. As our year began COVID-19 was rocking the foundations of the world as we knew it, however we had no idea of the extent to which it might impact on lives and the wider global economy.

Since then, the dedication of so many frontline people, the commitment to lockdown measures and advances in treatment and vaccines has brought considerable hope that we are seeing the path to a new normal.

We started the year with risk analysis and prevention to protect our colleagues and customers, deferred non-essential costs, adopted COVID safe practices and secured additional funding by means of a Placing in June 2020, raising GBP5.1m net of costs.

Retail businesses have been affected to different degrees. Fortunately Angling Direct has a strong purpose, diversified selling model and enjoys an experiential culture, growing on the back of being serious about our customers' successful and enjoyable fishing experience. We operate in a specialist niche sector and one well known for its wellbeing and mental health benefits as a result of time spent outside beside the water. Whilst we experienced store and fishing closures in the year, demand and popularity of angling grew with annual fishing licence sales increasing by 17%, equivalent to more than 100,000 new licences in 2020.

During the store closure periods, our online business saw exceptional growth, which was helped by our flexible stocking system. Additionally, during the summer, the huge pent-up demand resulted in larger than usual sales volumes after our stores reopened.

Our Board also saw a number of changes in the year. Darren Bailey stepped down as CEO in February 2020 and was appointed as a Non-Executive Director. Darren has now notified the Board of his intention to step down as a Non-Executive Director to take effect as at the close of the Company's forthcoming Annual General Meeting. Darren's contribution to the growth and success of the Company has been immeasurable and I offer my heartfelt thanks for everything he has done.

Andy Torrance became our new CEO (from his role as a Non-Executive Director) and Dilys Maltby joined as a Non-Executive Director in February 2020. In January 2020 we also appointed Steve Crowe as our new CFO. At the time I was confident that the variety and depth of experience provided by these appointments would prove invaluable during our next phases of growth, and I am pleased with the progress that has been delivered to date.

Our new Board members were immediately faced with the pandemic in addition to onboarding and learning the intricacies of the business, its processes and culture and its strengths and weaknesses. A 'baptism of fire' which they rose to and surpassed with exceptional efficiency whilst demonstrating a compassion for colleagues and customers. I am so very pleased to offer my gratitude and thanks for their commitment, dedication, and passion.

Financial performance

Despite COVID-19 the Group exceeded its growth forecast and achieved record revenue of GBP67.6m, up 27.1% (2020: GBP53.2m). Whilst our retail stores were affected by lockdowns throughout the year, our online sales grew by 39.9% to GBP35.3m (2020: GBP25.2m). Pleasingly, and as a result of our planning and drive for efficiency, the Group returned to profitability in the year, delivering a post-tax profit of GBP2.4m and a 300bps improvement in Gross margin to 34.2%. As a result of the share placing, our cost saving measures and strong cash generation, the Group ended the year with a strong balance sheet with net cash of GBP15.0m at 31 January 2021.

Operational progress

It is important to periodically strengthen pillars and build new platforms to provide capacity and functionality to support the next growth cycle. Prior to IPO we did that to enable the Group to grow to meet its 5 year GBP50m revenue target. We achieved this in just 3 years enabling us to make step changes operationally to embark on and support the next stage of our growth strategy. As such, despite COVID-19, we stayed focused on our strategic objectives; strengthening the Board, and reviewing operational processes to enable the Company to move strongly towards its future ambitions.

We thoroughly reviewed financial, purchasing and sales process efficiencies, including placing a big emphasis on margin and cash retention. We cut stock shrinkage and discounting and increased distribution efficiencies and capacity. We evaluated labour to turnover ratios and implemented best practices and processes to improve efficiency and provide store colleagues with more time for our customers. We implemented a customer segmented category management process to ensure that we buy the right product at the best prices, covering the various fishing disciplines and angling abilities. We also continued our online technology development to obtain benefits from ongoing in-house improvements following upgrades to our web platform, a key driver in our European strategy.

Whilst COVID-19 prevention was a major logistical exercise, we successfully introduced 'safe practice' processes in all our premises to ensure best possible protection for our colleagues and customers. We also opened four new stores and refurbished others, constantly aiming to improve our reach and exceed customers' expectations.

Change in market dynamics through 2021

Instore retailing has faced significant challenges in recent years and lockdown restrictions have acted as a further catalyst rapidly accelerating the trend towards online sales.

Fortunately, we operate in a specialist niche sector with stores based in destination locations that have proved more adaptable during lockdowns. Customers want to buy our broad range of products to facilitate the sport they love. Our unrivalled range of products allows us to offer the opportunity, supported by an experienced team, for customers to see, feel, buy and immerse themselves in their passion whether they are beginners or seasoned experts.

Additionally, our omni-channel strategy of operating the best stores and websites seamlessly together within our sector paid dividends as our online operation handled significant demand increases during the periods our stores were closed, supported by our flexible stocking policy.

The large pent-up demand built up whilst fishing was prohibited released with a flood of business from mid-June when stores reopened, whilst our online business continued to grow at pace. This proved that demand for well-located physical experiential stores, manned by trained enthusiastic colleagues, remains strong in our sector.

The large increase in fishing's popularity as a low cost activity with multiple well-being benefits attracted many new anglers to the sport which in turn, brought, we believe, the first real increase in licence sales for several years.

Maintaining consistent product availability with many suppliers closed for periods and shipping delays from China presented challenges, but we foresaw this risk with the increase in our available cash helping the Group to secure good stocks of the product available. Brand shortages also benefited our own higher margin Advanta own brand sales.

People and community

Supporting people and communities is one of our key strategic pillars and we focus on the role the Group plays, aiming to not just enhance the lives of anglers and colleagues, but also to have a positive impact on our suppliers, shareholders, local communities, the wider society and environment.

We have an incredible team of colleagues sharing our vision and passion to deliver the very best experience to all our customers. Our ambition is to be the best employer in our sector, caring for our colleagues' wellbeing and fulfillment. Our people are core to our culture and to delivering our purpose and I am grateful to them for their tremendous contributions and dedication, particularly during these times.

"There are two distinct visits to tackle shops, the visit to buy tackle and the visit which may be described as Platonic when, being for some reason unable to fish, we look for an excuse to go in, and waste the tackle dealer's time" Arthur Ransome

Our customers love being in our stores, on our website and social media outlets socialising, learning and receiving top-quality fishing advice and assistance. We equally relish both the visits to buy and the platonic, to use Arthur Ransome's words.

Ours is a passion to introduce the benefits of fishing to as many people as possible, through promotion, coaching, education and advice. In addition to our own direct initiatives, we have teamed up with the Angling Trust and their "Get fishing" campaign. We endorse evidence that fishing is a great way to improve all round well-being and we support bodies set up to encourage those with disabilities, of any kind, to benefit from fishing.

Looking ahead

In conclusion, it has been a year of great difficulty and sadness for the whole world and we are aware and respectful that Angling Direct has been more fortunate than many. We have faced challenges, arising from the pandemic and at a time that coincided with the first ever major changes to our Board. What stands out is the way the whole Board, new and old, rose to those challenges and has melded together into an efficient, passionate, and caring team.

As already mentioned, I am delighted at the way the new Executive Board members have on-boarded in such an efficient and seamless fashion despite the exceptional challenges of the last year. This has given me total confidence in their ability to ensure the Company continues to grow in accordance with our purpose and ambition, so much so that I have decided to seek re-appointment at the Company's forthcoming Annual General Meeting in the reduced role of Non-Executive rather than Executive Chairman.

As we head into the summer, our stores have been open since 12 April and anglers are returning to the waterside as virus infections thankfully reduce. This gives me increased confidence to look forward with measured optimism, as we adjust to the new normal. I have confidence in the strength and experience of our team, our determination and passion for this special sector. Coupling this with a strong balance sheet, good stock depth, solid operations, platform and processes for growth, I believe the Angling Direct brand remains exceptionally well placed to continue to deliver on its founding ethos and purpose.

Martyn Page

Executive Chairman

11 May 2021

Chief Executive's Review


FY21 was an unprecedented year on a number of fronts, presenting unexpected challenges well beyond anyone's existing experience. Our business model and organisational resilience has been thoroughly tested. I'm very pleased to report that not only has our amazing team been able to maintain our strong sales record, with total sales increasing by 27.1%, but they have also risen to the challenge and ensured that we made solid strategic progress to strengthen the Group for our next phase of growth. I would like to thank all my colleagues for their exceptional commitment, spirited resilience, and adaptability during this year.

As the UK market leader Angling Direct is uniquely placed to deliver further profitable growth within the thriving European fishing tackle market as an increasing number of people of all ages discover the restorative pleasure, challenge and wellbeing benefits of angling.

This is my first full financial year as CEO having moved into the role from Non-Executive Director in February 2020. Our ambition in this period was to continue to grow market share both in the UK and Europe, whilst also strengthening the Group to optimise core business return and achieve its strategic objectives. As well as driving growth across all UK and key European channels and ensuring operational efficiency, we set out to protect and improve our profit margins, ensuring that our investments generate an increasingly appropriate and sustainable return for all stakeholders.

Investments in warehousing automation, capacity and operating processes allowed our colleagues to safely continue to provide an excellent service to our growing customer base throughout the year. Our upgraded online platform enabled online sales growth of 39.9%, accounting for 52% of total revenue. This has been a year that was characterised by three significant periods of forced nationwide store closures, along with other localised periods of retail restrictions and social distancing. Over 30% of store trading days were lost to closure in the year. Despite this backdrop, as a result of call and collect and sustained customer demand in open periods, store revenues grew by 15.5%, including GBP2.2m sales from the four new stores that were opened in the year.

Our revised trading approach, promoting all that Angling Direct has to offer, coupled with a more disciplined approach to pricing and inventory management meant a 300bps improvement in gross margin and a 39.5% gross profit improvement on the prior year to GBP23.1m. Consequently, profit before tax moved to a positive position and improved 279% against FY20. Strong trading and improved working capital disciplines meant operating cashflow improved by 825% to GBP6.9m.

We are slowly emerging from an extraordinary period of pandemic disruption and Brexit uncertainty. Whilst the impacts are still being felt and some degree of uncertainty remains, I am pleased that we have remained focused on the clear areas of opportunity for Angling Direct. We have emerged as a much stronger business as a result of the actions we have taken in the past year. I am confident that the investments we will continue to make going forward mean that we are well positioned to get even more people out fishing and continue to deliver sustainable, profitable growth.

Business review

Strategic progress in an unprecedented year

We set out at the beginning of the period to optimise our core business return whilst also seeking further growth opportunities. Our initial focus has been on driving operational excellence, improving return on capital, and improving our customers' experience whichever sales channel they choose.

Operational excellence

Our recently upgraded web platform has driven increased site speed and allowed our customers to experience improvements across the search, recommendation, bought with, reserve and collect and checkout functions. We will shortly be introducing a mobile app and further search improvement. Despite the huge increase in site traffic and browsing during the various lockdowns, our conversion rate held at 5.9% in the UK. Average basket values across the whole business also improved, returning to FY19 levels as we reduced blanket promotional activity and sought to balance conversion and customer repeat frequency.

We have refocused our trading stance to promote not only our everyday price competitiveness but also to highlight the breadth of our ranges, including Advanta, the quality of our service and customer inspiration. This has resulted in significantly less discounting, more targeted sell through of products and reduced margin erosion.

We invested significant time and resource to ensure that all our colleagues were able to operate within COVID-19 safe working guidelines in order to minimise disruption to our customers. In the distribution centre we utilised 24/7 shift patterns, recruited extra colleagues and flexed our customer promise appropriately. This, combined with increased utilisation of our Kardex sortation system and newly established operating procedures meant we achieved a record online revenue week of GBP1.1m in late June and improved labour cost distribution efficiency by 240 bps, to 3.6% for the full year.

Through the winter we reconfigured our warehouse to increase pallet capacity by 80%, streamlined goods in and increased packing bench capacity. This is crucial to achieve our own brand Advanta sales ambition as well as increasing capacity for future growth.

We have reviewed, and evolved our shrinkage management processes both instore and online, which has resulted in a reduction in stock loss leading to margin accretion of c.50 bps.

Store colleague rotas have been re-aligned to improve our instore experience, match customer demand and drive conversion. Legacy payroll cost anomalies largely associated with previous acquisitions have been resolved.

Whilst being increasingly selective, our target new store locations are becoming increasingly clearer as we match potential sales volumes from licence sales data set against more optimised ranging and colleague costs.

Return on capital

Significant stock investment early in the year in our-own brand Advanta range has improved product availability, under pinned our range authority and allowed us to increase participation of this range to 4.8% (GBP3.2m sales) of total sales. This has further contributed to overall margin growth. We intend to develop this range, improve marketing and further increase participation by investing further in our team of Advanta dedicated colleagues as well as range and packaging development.

We moved quickly at the onset of the pandemic to engage with suppliers, using our long-established relationships to safeguard stock availability whilst optimising our cash position. We focused on deepening investment in more popular lines, whilst proactively seeking improved stock turn of slower selling products by focusing promotional activity on long stocks and discontinued lines. As a result of these actions, stock turn in the year improved to 3.6x from 2.8x in the prior year.

During lockdown store closures we opportunistically utilised our store network to protect online stock availability for our customers. More recently we have begun to open our store stock files to allow direct to customer online fulfilment, improving customer conversion and further optimising stock turn.

We have increased scrutiny and oversight of all new expenditure including new store site selection. We have revised our processes and have much improved visibility of our cashflows, allowing better planning and opportunistic stock investment.

In addition, we raised GBP5.1m net of costs from existing shareholders at a time when the extent and impacts of the pandemic were less well understood. This additional financing has subsequently given the Board confidence to continue to invest in the business and drive margin accretive growth.

New growth opportunities - Customer segmentation

We have established a new customer-focused category management ranging approach by investing in our buying and purchasing structures and processes. We are focused on five major fishing disciplines, Carp, Coarse, Predator, Sea and Game. Aligned with our ambition to make angling accessible to everyone we are now organised and focused upon developing ranges within these key disciplines that will appeal to beginners, generalists, enthusiasts and the truly committed. This ongoing approach will ensure Angling Direct remains the 'go to' fishing tackle retailer for all anglers, regardless of ability or fishing discipline. Category management will also inform our supplier management strategy by encouraging partners to align with our growth objectives for mutual benefit.

New growth opportunities - Digital capability

We have been able to call upon our significant stock depth, semi-automated distribution facility, multilingual customer care team and significant social media reach to ensure that we can provide our customers with market leading advice, engagement, service and inspiration even when our stores have been closed.

Our web team has developed and progressively deployed new customer journey functionality as a result of our web platform upgrade to Magento 2. Visitors have experienced improved site speed, newly designed landing pages, optimised search, eGiftcards, product recommendations and video content. Conversion rates in the UK remained above 5.9% in the context of an increase of 50% increase in site visitors. Our proactive online marketing investment throughout the phases of COVID-19 trading restrictions gave a return on advertising spend in the UK of 16.6x, an increase of 27% over the prior year.

New growth opportunities - Store catchments

We opened four new retail stores during the period in Warrington (February), Bristol (June), Northampton (July) and Leicester (September). We have made good progress developing our sea fishing ranges based upon an extended offering within the Bristol store. This continues to allow us to capitalise upon the growth in popularity of sea/beach fishing given increased staycation during the summer months. The Leicester store allowed us to trial the early outputs of our category management thinking with significant improvements in ranging, messaging, and ease of shopping.

We have refined our UK store property search and investment modelling bringing the total portfolio at the end of FY21 to 38 stores. Location-wise, we remain focused on the concentration of fishing licence sales as well as our local competitive profile. Our new property investment model ensures any new site is targeted with delivering appropriate returns within a minimum acceptable time. It remains to be seen how the continued demise of premium High Street retail space impacts upon the cost and availability of our target destination locations and we continue to monitor developments closely.

New growth opportunities - International

Internationally we have carried out an in-depth review of our existing business (in FY20 over 34,000 customers across 34 territories). Early on we took the decision to focus on those markets that offered the most attractive, sustainable and profitable growth, most closely aligned to our core fishing disciplines. We have therefore ceased trading with international agents and in territories where carriage costs and VAT regimes prohibit any near-term value opportunity. As a result, our international sales outside of the native language countries reduced in the year by GBP1.4m but delivered improved profitability from this channel of c.GBP0.2m.

We now despatch to over 16 countries in European markets estimated to be valued in excess of GBP2.8bn via our UK website and three growing native language sites (German, French and Dutch). We are clear in our strategy that we will only make material market share gains when we are able to fully engage anglers locally. We have chosen therefore to concentrate our effort in five key territories, namely Germany, France, Netherlands, Belgium and Austria, a combined market we estimate to amount to up to GBP1.9bn. We believe it's vital for customer engagement that we have in-region native language websites, complemented with locally tailored ranges, local marketing and social media engagement. We ensure that our three international sites (German, French and Dutch) replicate our UK platform in terms of functionality.

The UK finally leaving the EU impacted our international business towards the end of the period. We have absorbed additional customs administration charges by managing our free carriage proposition. Significant disruption at various borders continues to impact on service levels and has inevitably dented international consumers' confidence. We continue to work with the Angling Trust and Angling Trades Association to lobby for a change in administration which effectively stops us despatching bait into the EU because of its characterisation as animal feed. Despite this we remain confident that our business model and brand strength leave us ideally positioned to increase share in our chosen overseas markets over the medium term.

As the focus of the Executive team has moved on from direct management of the pandemic the business has been able to accelerate its pace of exploring options for in region fulfilment to enhance customer engagement and accelerate market share gains while improving fulfilment efficiency.

Organisational capability

As well as investing in additional experienced colleagues within our new Category Management team we have made key hires within other growth critical areas namely Web development, Technology, Finance and Operations.

We have made prudent investments to ensure resilience, stability, security and growth capacity within our server provision for both our Epicor ERP and Magento web platform.

Our colleagues and our role in the community

Our colleagues are the face of Angling Direct to retail customers and are key to delivering an excellent service, both in store and online. They also play a key role in the angling community. We differentiate ourselves by providing expert help, trusted advice and inspiration for customers to get the most from their fishing. In order to maintain our unique teams during lockdown store closure periods, we topped up furlough payments to protect our colleagues' income, we increased our all colleague annual Christmas bonus as a thank you and each team member now takes an additional 'Gone Fishing' day as an increase to their annual leave to focus on their own well-being.

We're delighted to have further developed our relationship with the Angling Trust. We are now the exclusive retail sponsors of its Get Fishing campaign, designed to attract new and returning anglers through a bankside coaching programme to improve angling skills. We have co-funded the training of over 80 Angling Direct colleagues as certified angling coaches who, as well as advising customers in store, will also support Get Fishing events nationwide. These events are designed to reach nearly 40,000 new anglers, each a prospective new customer for Angling Direct. We're delighted to have donated both fishing equipment and our store colleagues time to support Tackling Minds, the first charity to deliver angling as an activity in support of an NHS initiative to prescribe fishing as a new mental health therapy.

Having reviewed our social media channels in the year, we've launched Team AD, a fresh, new, more inclusive approach to our market leading social media reach that features various colleagues of a broad range of ages, genders, fishing abilities and disciplines, designed to appeal to an ever more diverse customer base. We plan to evolve this concept into our stores to further engage local fishing communities who will increasingly see Angling Direct as an extension of their angling clubs.

We take our responsibilities seriously and that extends to ensuring Angling Direct is a sustainable business across the areas of environmental protection, economic viability, and social equality.


During the year we have made significant strategic and operational progress, which was reflected in the continued strong sales growth, gross margin improvements and enhanced operational efficiencies. The popularity of fishing around the world has grown during the pandemic, as has spending on angling, and we have never been better placed to gain further profitable market share.

Some uncertainties clearly remain as we start to emerge from the pandemic but through quick and decisive actions taken in this last year, the loyal support of our customers and suppliers, along with the dedication of our colleagues, we emerge with renewed strength and confidence. Again, I would like to thank all our stakeholders for the role they have and continue to play in our ongoing success.

We continue to invest organically alongside evaluating appropriate inorganic growth initiatives to achieve our ambition to become Europe's first choice omni-channel fishing tackle destination. In the year ahead we will particularly focus on efficient international fulfilment within our key target territories. We will continue to invest in technology and digitisation with a focus on seamless integration between channels and accessibility through web applications to extend our reach into new and existing angling communities.

Developing a contemporary category management capability, appropriately evolving our own brand ranges and modernising our store formats will enable us to continue to protect and improve sales margins while growing market share.

We are actively working to deepen our sense of purpose, building on our founding philosophies to Get Everyone Out Fishing. Developing a wider Team AD approach will increase our relevance and drive further participation in local communities for the benefit of all our stakeholders.

Having reopened our stores on 12 April and with the UK emerging from the pandemic, I am cautiously optimistic when I look to the future: the strong foundations we have put in place through 2020 will ensure the Group is able to take advantage of the numerous opportunities that will arise through the remainder of 2021 and beyond.

Andy Torrance

Chief Executive Officer

11 May 2021

Chief Financial Officer's Review

Our focus at the start of the financial year was to continue to generate solid revenue growth while materially improving the profitability of the business through leveraging the previous investments made in both the online business and store portfolio. Whilst the onset of the COVID-19 pandemic initially challenged this ambition, as social and trading restrictions became further understood the Executive team recommitted to this objective of not letting FY21 become a stall year in the Group's strategic and financial progression. As a result of this focus, the Group has delivered on this objective with a resilient financial performance, moving back to profit alongside improved cash generation and a more robust and resilient balance sheet.

Financial highlights

In FY21 the Group continued to generate strong revenue growth. The pace of growth in the online business increased 3-fold to 40%, influenced by the backdrop of COVID-19 impacting physical store trading restrictions.

FY21 saw an increasing emphasis on margin development through greater focus on stock losses (shrinkage) and effective promotional activity. Alongside the focus on these areas, the Group made significant progress in leveraging previous investments in its distribution capability, Kardex (semi-automated picking system), Epicor ERP and Magento 2 website development. During the period, the Group was also able to access government support in the form of the Coronavirus Job Retention Scheme ("CJRS") and Retail Hospitality & Leisure Grant Fund ("RHLGF") to compensate the Group for costs incurred when it was unable to trade across all channels. Profit after tax was GBP2.4m (FY20: loss GBP1.3m).

The discussion of our financial performance and position in this section is primarily on an IFRS 16 basis for all years presented. We have also included an analysis of pre- IFRS 16 EBITDA as an alternative performance measure that we consider as a key measurement of performance internally as well as within our covering Brokers' market forecasts.

Note 5 to the consolidated financial statements provides more information and reconciliations relating to EBITDA on both a pre and post IFRS 16 basis. An explanation of the difference between the reported operating profit figure and adjusted EBITDA is shown below:

 Financial Highlights 
                                                                              Change      Change 
                                 2021        2021       2020        2020         %           % 
                               Post-IFRS   Pre-IFRS   Post-IFRS   Pre-IFRS   Post-IFRS   Pre-IFRS 
                                   16         16          16         16          16         16 
                              ----------  ---------  ----------  ---------  ----------  --------- 
 Revenue (GBPm)                  67.6        67.6       53.2        53.2       27.1%      27.1% 
 EBITDA (GBPm)                    5.7        4.0         0.7       (0.5)      767.7%      958.0% 
 Operating profit / (loss) 
  (GBPm)                          3.1        2.7        (1.2)      (1.3)      348.9%      310.9% 
 Profit / (loss) before tax 
  (GBPm)                          2.6        2.7        (1.5)      (1.2)      278.8%      321.8% 
 Basic earnings per share 
  (pence)                        3.33                  (2.03)                 264.0% 
                              ----------  ---------  ----------  ---------  ----------  --------- 

Management uses EBITDA on a pre IFRS16 as the basis for assessing the financial performance of the Group. These terms are not defined by IFRS and therefore may not be directly comparable with other companies adjusted profit measures.

Another record year for revenue

Revenue grew 27.1% year on year with online sales increasing 39.9% and stores 15.5% in comparison to 13.6% and 41.3% respectively in FY20. UK online sales increased 61.5%, with the Group's native language website sites increasing 35.0%. The second half of FY21 proved more challenging for the native language sites with growth slowing to 20.0% from 50.7% in the first half, as the Brexit ports hiatus impacted customer delivery lead times and hence conversion of online traffic into orders.

 Revenue                                    31 January   31 January 
                                               2021         2020 
                                               GBPm         GBPm 
                                           -----------  ----------- 
 UK Revenue                                    63.2         48.2 
 Germany, France and Netherlands revenue       2.9          2.1 
 Other countries revenue                       1.5          2.9 
                                               67.6         53.2 
                                           -----------  ----------- 
 Retail stores revenue                         32.3         27.9 
 Ecommerce revenue                             35.3         25.3 
                                               67.6         53.2 
                                           -----------  ----------- 

The Group continues to focus on its online sales to international territories that deliver both strong sales growth and promising levels of profitability. Our international footprint is predominantly in mainland Europe and these international sales accounted for 12.4% of total online sales (FY20: 19.9%). Our German, French and Dutch websites, which make up the Group's core European markets, increased sales to these countries by 28.7%, 39.1% and 44.1% respectively. These three territories now represent 65.6% of total international sales (FY20: 42.3%). Our exit from the unprofitable Russian territory reduced sales by GBP0.6m year on year.

Stores were impacted by trading restrictions at a number of junctures during the financial year; despite this like-for-like store sales only modestly decreased by 7.7%. The increase in store sales was from our ten FY20 stores and the four new store openings in FY21 which contributed GBP10.2m (15.1%) to total revenue.

Our own brand products Advantacontributed 4.8% (FY20 2.8%) of total sales, GBP3.2m, during the year (FY20: GBP1.5m).

Gross margin

Our gross profit increased by 39.5% to GBP23.1m (FY20: GBP16.6m). Gross margin improved 300 bps to 34.2% (FY20: 31.2%) and the key underlying factors are explained below:

Legacy inventories

The new Executive team promoted excellence in thinking about how we range and buy ahead of fully implementing the strategic initiative of "category management" in late Q4 FY21. This alongside, as my financial report highlighted in FY20, clearing of legacy stock from acquired businesses, materially improved gross margin in the year.

Inventory losses

I highlighted in my first CFO statement in FY20 the historical challenges identified with the inventory management processes and resulting stock shrinkage which impacted margins during FY20. An increased emphasis on loss prevention alongside a new returns and faulty stock process in Q4 has substantially improved the impact of shrinkage on the Group. We expect to see further benefit of these investments in FY22.

Promotional activity

Historically the Group has relied upon blanket promotional and customer marketing activity. In FY21, as the Group became more confident in the development of its wider customer proposition, these blanket activities have been substantially reduced, materially benefiting the gross margin while maintaining revenue growth.

Category management range reviews

As I have highlighted above, in Q4 FY21 the Group formally implemented its category management approach to ranging and buying. As part of this launch a number of product lines have been identified, which it is highly probable will be exited from the business during FY22. In order to potentially exit these ranges quickly, it is also highly probable these identified ranges will be sold below their cost price. As a result, the FY21 results reflect this cost through a reduction in the inventory values for these stock lines.

Other income

As highlighted above the Group was able to access direct government support to compensate for costs incurred whilst the business was unable to fully trade during the ongoing COVID-19 pandemic. The Group accessed GBP1.5m of support, GBP0.6m for RHLGF and GBP0.9m for CJRS. The Group claimed no CJRS monies post Q3 FY21 as the uncertain trading restrictions resulted in the Group using colleague time to re-train and embed process disciplines where appropriate.

Administrative expenses

Total administrative expenses increased by 23.3% to GBP18.2m (FY20: GBP14.7m) compared to a 27.1% increase in revenue. Much of the increase is sales volume driven and reflects the Group's broader organisational scale in terms of physical store footprint and investment in colleagues. Headcount cost has increased by 21.6% to GBP10.1m (FY20: GBP8.3m). The additional depreciation and amortisation charged mainly relates to new store leased assets which increased to GBP2.7m (FY20: GBP1.9m). In addition, increased investment in search engine optimisation and pay per click activity to boost UK online sales growth and further establish native language websites in three territories has resulted in a 41.7% increase in advertising expenses to GBP1.7m (FY20: GBP1.2m).

Operating profit and EBITDA

The Group moved back to profit at the profit before tax level with the ratio to sales improving from (2.8%) FY20 to 3.9%, gross margin representing 3% of the movement, cost base 1.5% and government support 2.2%. EBITDA improved 768% to GBP5.7m (FY20: GBP0.7m), as a ratio of sales 8.5% (FY20 1.2%) and on a pre IFRS 16 basis 958% to GBP4.0m (FY20: loss GBP0.5m), as a ratio of sales 5.9% (FY20: -0.9%).


The Group's effective tax rate was 9.1% (FY20: 11.5%). A reconciliation of the expected tax charge at the standard rate to the actual charge is shown below. All of the Group's revenues and the majority of its expenses are all subject to corporation tax. The main expenses that are not deductible for tax purposes are professional fees. Tax relief for some expenditure, mainly fixed assets and unapproved share options is received over a longer period than that for which the costs are charged to the financial statements. Tax relief for the exercised EMI options in the year benefitted the tax charge as no profit charge had been made for these based on their fair value at date of exercise pre floatation. The tax charge also benefited in the year as previously unrecognised losses and increased prior year losses were able to offset current year taxable profits.

 Taxation                                    GBPm      % 
                                            ------  ------- 
 Profit before tax                            2.6 
------------------------------------------  ------  ------- 
 Expected tax at UK standard rate of 
  tax                                         0.5    19.0% 
 Share based payments                        (0.2)   (6.1%) 
 Expenses not deductible for tax purposes     0.0     0.5% 
 Adjustments in respect of previous years 
  tax charge                                 (0.1)   (4.1%) 
 Effect of tax rate change on opening 
  deferred tax balances                      (0.0)   (0.2%) 
 Actual charge / effective tax rate           0.2     9.1% 
------------------------------------------  ------  ------- 

Returns and dividends

Basic earnings per share ('EPS') is 3.33p (FY20: (2.03p loss)) as a result of the Group returning to a profit after tax for the period. The lower diluted earnings per share reflects the current LTIP share options in issue which would dilute the basic earnings per share.

There were no dividends paid, recommended or declared during the current and prior financial year. As discussed in the Directors' report, the Group is focused on carefully navigating COVID-19 and it is reinvesting all surplus cash resources back into the business. As a result of this, in the short term, the Directors do not recommend a dividend payment to be distributed for the year ended 31 January 2021. The dividend policy will be kept under review.

Financial impact of COVID-19

The impact of COVID-19 has resulted in significant uncertainty during the period and had a significant and unpredictable impact on each of our sales channels.

To mitigate the impact of reduced revenue early in the pandemic action was taken to preserve cash and reduce operating costs to protect earnings and liquidity. Measures taken included, but were not limited to, access to CJRS, deferment of VAT payments, increased supplier terms and reduction in capital expenditure and non-essential spend.

Statement of financial position

Our consolidated statement of financial position is robust. As at 31 January 2021 the Group had a net asset position of GBP33.1m (FY20: GBP25.5m) and a net current asset position of GBP20.2m (FY20: GBP12.8m).

The Group also had no external borrowing as at the reporting date and closed FY21 with a cash and cash equivalents position of GBP15.0m (FY20: GBP6.0m). Net debt* improved to (GBP3.9m) from GBP4.5m FY20 reflecting the strength of the earnings and cash generation in the period.

The key movements in the consolidated statement of financial position, largely reflect additional net current assets. The table below shows the key components with the key movements of note being reduction in inventory levels despite having four new stores in the estate as well as also building up our own branded stock, Advanta. Stock turn for the Group improved to 3.6x from 2.8x despite being unable to fully trade the store estate for over 1/3 of the annual trading days.

Right of use assets have grown modestly as we introduced four new stores into the estate, the increase largely off-set by a corresponding increase in the lease liabilities. Additional investment in our software and IT platforms of GBP338k was off-set by a corresponding depreciation charge as the business starts to reach a level of maturity on its investing profile.

 Statement of financial position    31 January   31 January 
                                       2021         2020 
                                       GBPm         GBPm 
                                   -----------  ----------- 
 Property, plant and equipment         6.0          5.6 
 IFRS 16 Right-of-use assets           10.9         10.5 
 Intangible assets                     6.3          6.2 
 Total non-current assets              23.2         22.3 
 Stock                                 12.5         13.4 
 Cash                                  15.0         6.0 
 Other current assets                  0.8          1.0 
 Total current assets                  28.3         20.4 
 Trade payables                       (6.7)        (6.4) 
 Lease liabilities                    (1.4)        (1.2) 
 Other current liabilities              -          (0.0) 
 Total current liabilities            (8.1)        (7.6) 
 Lease liabilities                    (9.8)        (9.3) 
 Other non-current liabilities        (0.5)        (0.3) 
 Total non-current liabilities        (10.3)       (9.6) 
 Net assets                            33.1         25.5 
---------------------------------  -----------  ----------- 

*Net debt represents the Group's IFRS 16 lease liabilities less the cash position as at the reporting date.

Cash flow and funding

During FY21 the Group improved the net cash used in operating activities to a GBP6.9m inflow (FY20: GBP1.0m outflow). Throughout the year the new Executive team has increased the focus on working capital and operating cash management, particularly in light of trading restrictions challenges with stock availability and certainty of supplier fulfilment dates.

The Group has pursued its growth strategy by continuing to deploy available cash resources into our e-commerce platforms both in the UK and internationally, alongside investment in our technology and inventory management systems. During the period, the Group spent GBP1.4m on additional property plant and equipment, primarily relating to opening four new stores and fully refurbishing two existing stores. The GBP1.4m additionally includes GBP0.1m reconfiguring the distribution centre to increase its capacity by c80%.

In the first half of FY21 the Group issued 11m new ordinary shares of 1p each raising GBP5.5m in gross proceeds. The placing was done at a time during the pandemic to provide further balance sheet strength for the business against the backdrop of a hugely uncertain trading environment. The placing ensured the Group had sufficient working capital to trade in the short term, as well as providing potential sources of capital for medium term expansion of the business. Given the strong trading during FY21 and the Group's robust financial position, the Board is deploying this cash on growth initiatives as we emerge from the pandemic. Net of costs the cash inflow was GBP5.1m.

Excluding the share placing the cash generation for the period was GBP3.9m with operating cash 2.3x investing and financing cash flows (excluding share placing) v (0.14x) in FY20.

 Cash flow                             31 January   31 January 
                                          2021         2020 
                                          GBPm         GBPm 
 Opening cash                             6.0          13.5 
------------------------------------  -----------  ----------- 
 Profit / (loss) for year                 2.6         (1.5) 
 Movement in working capital              1.5         (1.5) 
 Depreciation and amortisation            2.7          1.9 
 Taxation refund                           -           0.0 
 Other operating adjustments              0.1          0.1 
 Net cash from operating activities       6.9         (1.0) 
 Net cash from investing activities      (1.8)        (5.4) 
 Net cash from financing activities       3.9         (1.1) 
 Increase in cash in year                 9.0         (7.5) 
 Closing cash                             15.0         6.0 
------------------------------------  -----------  ----------- 

During the reporting period the Group had secured a short-term credit facility of GBP2.5m from NatWest with an expiry date of September 2020 to manage cash flow through the initial period of high uncertainty at the onset of the pandemic. This facility expired undrawn and had no financial covenants associated with its availability. During the period, the Group took the opportunity to defer VAT payments in line with HMRC guidance. By the period end all VAT payments had been made on the respective due dates.

Going concern and viability

At the Statement of Financial Position date, the Group had cash balances of GBP15.0m. The Directors consider the GBP15.0m enables them to meet all current liabilities as they fall due. Since the year end the Group has continued to trade in line with internal plans upon which this assessment has been made.

After consideration of market conditions, the Group's financial position, financial forecasts for two years, its profile of cash generation and principal risks, the Directors have a reasonable expectation that both the Company and the Group will be able to continue in operation and meet their liabilities as they fall due over the period. For this reason, the going concern basis continues to be adopted in preparing the financial statements.

Long-term growth

The Group has generated consistent growth in the scale of its business and profits over recent years. A summary of the compound growth rates ("CAGR") over the past two full trading years in the key financial figures is as follows:

                                                                             CAGR        CAGR 
 Long-term growth              2021        2021       2019        2019         %           % 
                             Post-IFRS   Pre-IFRS   Post-IFRS   Pre-IFRS   Post-IFRS   Pre-IFRS 
                                 16         16          16         16          16         16 
                            ----------  ---------  ----------  ---------  ----------  --------- 
 Revenue (GBPm)                67.6        67.6       42.0        42.0       26.8%      26.8% 
 EBITDA (GBPm)                  5.7        4.0         1.1        0.3       127.3%      245.8% 
 Profit before tax (GBPm)       2.6        2.7        (0.4)      (0.3) 
 EPS (pence)                   3.33                  (0.76)      (0.55) 

FY22 outlook

FY21 was characterised by unprecedented trading conditions, condensing store trading periods and associated sales alongside strong online growth, which helped accelerate the execution of our strategic plan. In addition to an improvement in gross margins, we also benefited from significant levels of financial assistance from UK Government which further benefitted Group net margins, alongside our plan to deliver sustained operational efficiencies.

We started FY22 with further enforced store closures for much of the first quarter. Uncertainties around our Far East supply chain and further post-Brexit trading restrictions also persist, in particular affecting our mainland European markets. Using our strong balance sheet, the Group has pre-emptively increased stock levels since the period end to mitigate any further supply chain disruption and product availability, allowing both our online and store operations to continue to trade effectively.

Following an exceptional period and emerging from the pandemic, some uncertainty remains, however, the Board is now seeing increasing levels of visibility in its markets. As such, the Board believes that the Group is well-placed to deliver profitable growth in revenues, albeit it is reasonable to expect that this will be at a lower rate than the prior year as trading conditions and sales mix begin to normalise.

The measures taken by the Group to drive continued gross margin enhancement and the more efficient cost base that will underpin this growth are also now well established. The Group took further financial assistance from UK Government during the first quarter of FY22 but, on the basis that there are no further national lockdowns, we expect much lower income from this source in the current year compared with FY21 We expect that the consequential impact on profitability will be partially mitigated by further underlying operational efficiency improvements.

Outside of COVID-19 we have continued to focus on building disciplined financial controls, achieving operational excellence, strengthening corporate governance, maintaining the robustness of the statement of financial position and capitalising on the renaissance of fishing as a pastime and our improved and evolving online and store customer offerings.

Steven Crowe

Chief Financial Officer

11 May 2021

Consolidated statement of profit or loss and other comprehensive income

For the year ended 31 January 2021

                                                                      2021          2020 
                                                            Note   GBP'000       GBP'000 
Revenue from contracts with customers                        3      67,581        53,181 
Cost of sales of goods                                       6    (44,458)      (36,601) 
Gross profit                                                        23,123        16,580 
                                                                  --------  ------------ 
Other income                                                 4       1,540             - 
Interest revenue calculated using the effective interest 
 method                                                                 24            73 
Administrative expenses                                      6    (18,183)      (14,747) 
Distribution expenses                                              (3,424)       (3,061) 
Finance costs                                                        (434)         (325) 
                                                                  --------  ------------ 
Profit/(loss) before income tax (expense)/benefit           2,646  (1,480) 
Income tax (expense)/benefit                               8(241)      170 
                                                            -----  ------- 
  Profit/(loss) after income tax (expense)/benefit for 
  the year attributable to the owners of Angling Direct 
  PLC                                                       2,405  (1,310) 
Other comprehensive income for the year, net of tax             -        - 
                                                            -----  ------- 
Total comprehensive income for the year attributable 
 to the owners of Angling Direct PLC                        2,405  (1,310) 
                                                            =====  ======= 
                                                            Pence    Pence 
Basic earnings per share                                22   3.33   (2.03) 
Diluted earnings per share                              22   3.28   (2.03) 

Consolidated statement of financial position

As at 31 January 2021

Non-current assets 
                                                   2021          2020 
                                         Note   GBP'000       GBP'000 
Intangibles                               9       6,251         6,216 
Property, plant and equipment             10      6,019         5,593 
Right-of-use assets                       11     10,910        10,480 
Total non-current assets                         23,180        22,289 
                                               --------  ------------ 
Current assets 
Inventories                               12     12,481        13,453 
Trade and other receivables               13        623           509 
Prepayments                                         245           474 
Cash and cash equivalents                        14,996         5,978 
Total current assets                             28,345        20,414 
                                               --------  ------------ 
Current liabilities 
Trade and other payables                  14      6,741         6,430 
Lease liabilities                         15      1,358         1,182 
Income tax                                            -            17 
Total current liabilities                         8,099         7,629 
                                               --------  ------------ 
Net current assets                               20,246        12,785 
                                               --------  ------------ 
Total assets less current liabilities            43,426        35,074 
                                               --------  ------------ 
Non-current liabilities 
Lease liabilities                                 9,773         9,334 
Restoration provision                     16        277           249 
Deferred tax                              17        258             - 
Total non-current liabilities                    10,308         9,583 
                                               --------  ------------ 
Net assets                                       33,118        25,491 
                                               ========  ============ 
Share capital                             18        773           646 
Share premium                             19     31,037        26,017 
Reserves                                  20         75             - 
Retained profits/(accumulated losses)             1,233       (1,172) 
Total equity                                     33,118        25,491 
                                               ========  ============ 

Consolidated statement of changes in equity

For the year ended 31 January 2021

                                                              Share               Retained 
                                                 Share      premium   profits/(accumulated 
                                               capital      account                losses)  Total equity 
Consolidated                                   GBP'000      GBP'000                GBP'000       GBP'000 
Balance at 1 February 2019                         646       26,017                    138        26,801 
Loss after income tax benefit for the 
 year                                                -            -                (1,310)       (1,310) 
Other comprehensive income for the year, 
 net of tax                                          -            -                      -             - 
Total comprehensive income for the year              -            -                (1,310)       (1,310) 
Balance at 31 January 2020                         646       26,017                (1,172)        25,491 
                                              ========  ===========  =====================  ============ 
                                                 Share  Share-based 
                                       Share   premium      payment               Retained 
                                     capital   account      reserve                profits  Total equity 
Consolidated                         GBP'000   GBP'000      GBP'000                GBP'000       GBP'000 
Balance at 1 February 2020               646    26,017            -                (1,172)        25,491 
Profit after income tax expense 
 for the year                              -         -            -                  2,405         2,405 
Other comprehensive income for 
 the year, net of tax                      -         -            -                      -             - 
Total comprehensive income for 
 the year                                  -         -            -                  2,405         2,405 
Transactions with owners in 
 their capacity as owners: 
Contributions of equity, net 
 of transaction costs                    127         -            -                      -           127 
Share premium, net of transaction 
 costs                                     -     5,020            -                      -         5,020 
Share-based payments                       -         -           75                      -            75 
Balance at 31 January 2021               773    31,037           75                  1,233        33,118 
                                     =======  ========  ===========  =====================  ============ 

Consolidated statement of cash flows

For the year ended 31 January 2021

Cash flows from operating activities 
                                                                2021          2020 
                                                             GBP'000       GBP'000 
Profit/(loss) before income tax (expense)/benefit 
 for the year                                                  2,646       (1,480) 
Adjustments for: 
Depreciation and amortisation                                  2,662         1,887 
Share-based payments                                              75             - 
Net movement in provisions                                        18            81 
Interest received                                               (24)          (70) 
Interest and other finance costs                                 434           325 
                                                               5,811           743 
Change in operating assets and liabilities: 
Increase in trade and other receivables                        (114)         (143) 
Decrease/(increase) in inventories                               972       (2,678) 
Decrease/(increase) in prepayments                               229         (152) 
Increase in trade and other payables                             407         1,552 
Decrease in other provisions                                       -          (73) 
                                                               7,305         (751) 
Interest received                                                 24            70 
Interest and other finance costs                               (424)         (325) 
Income taxes refunded                                              -            53 
Net cash from/(used in) operating activities                   6,905         (953) 
                                                            --------  ------------ 
Cash flows from investing activities 
Payment for purchase of business, net of cash acquired             -       (2,475) 
Payments for property, plant and equipment                   (1,382)       (2,474) 
Payments for intangibles                                       (338)         (501) 
Payment of contingent consideration                             (48)             - 
Net cash used in investing activities                        (1,768)       (5,450) 
                                                            --------  ------------ 
Cash flows from financing activities 
Proceeds from issue of shares and premium                      5,147             - 
Repayment of lease liabilities                               (1,266)       (1,160) 
Net cash from/(used in) financing activities                   3,881       (1,160) 
                                                            --------  ------------ 
Net increase/(decrease) in cash and cash equivalents           9,018       (7,563) 
Cash and cash equivalents at the beginning of the 
 financial year                                                5,978        13,541 
Cash and cash equivalents at the end of the financial 
 year                                                         14,996         5,978 
                                                            ========  ============ 

Notes to the consolidated financial statements

31 January 2021

1. Basis of preparation

The Group's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union and IFRIC interpretations and with those parts of the Companies Act 2006 applicable to reporting groups under IFRS.

The financial information set out above does not constitute the company's statutory accounts for 2021 or 2020. Statutory accounts for the years ended 31 January 2021 and 31 January 2020 have been reported on by the Independent Auditors. The Independent Auditors' Report on the Annual Report and Financial Statements for the year ended 31 January 2020 was unqualified, but did contain a material uncertainty in respect of going concern and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006. For the year ended 31 January 2021 their report is unqualified,

Statutory accounts for the year ended 31 January 2020 have been filed with the Registrar of Companies. The statutory accounts for the year ended 31 January 2021 will be delivered to the Registrar in due course.

2. Going concern including liquidity 
 In the light of the ongoing COVID-19 pandemic, Management has considered 
 whether any adjustments are required to reported amounts in the financial 
 statements. As at the 31 January 2021 reporting date, all of the Group's 
 stores remained closed following Government policy to limit social interaction. 
 The Group's stores reopened on 12 April 2021 having been closed since 5 
 January 2021. The Group's webstores, however, have continued to trade and 
 the distribution centre has remained open throughout the pandemic with encouraging 
 levels of trade. The Group continues to adopt the going concern basis in 
 preparing these financial statements. 
In making this judgement, the Directors have reviewed the future viability 
 and going concern position of the Group for the foreseeable future. 
The evolving situation with respect to COVID-19 does not give rise to a 
 material uncertainty around going concern and Management are satisfied that 
 the mitigating factors are sufficient to address severe but plausible downside 
 scenarios and support the going concern judgement. The Directors have prepared 
 cash flow forecasts for a period of 12 months from the reporting date which 
 cover various scenarios. Severe and remote scenarios challenge the liquidity 
 of the Group, such a scenario would require no trading of stores for the 
 next twelve months with no remedial actions on the cost base or additional 
 government support beyond the business rates reliefs announced in March 
 2021, as well as maintaining current capital expenditure plans. The Board 
 considers this scenario extremely remote. Two-year forecasts to 31 January 
 2023 demonstrate modest positive cash generation. A two-year period is deemed 
 appropriate as the Group has no longer term debt obligations save for IFRS 
 16 lease obligations. 
In terms of mitigating actions during the COVID-19 pandemic and liquidity, 
 the Group has moved swiftly to preserve capital and improve cash flow. The 
 Group successfully raised GBP5.5m gross proceeds from a share placing in 
 June 2020 and in addition also welcomed the wide-ranging financial support 
 measures introduced by the UK Government to protect businesses and employees. 
 The Board has taken the decision to use the reliefs extended, including 
 furloughing employees, business rates reliefs, retail property grants as 
 well as the deferral of VAT liabilities (fully settled at the balance sheet 
 date) to reduce cash outflows and provide the Group with additional liquidity 
 during uncertain trading periods. 
 3. Revenue from contracts with customers 
  Disaggregation of revenue 
  The disaggregation of revenue from contracts with customers is as follows: 
                                             2021     2020 
                                          GBP'000  GBP'000 
  Route to market 
  Retail store sales                       32,259   27,935 
  E-commerce                               35,322   25,246 
                                           67,581   53,181 
  Geographical regions 
  United Kingdom                           63,206   48,164 
  Germany, France and Netherlands           2,868    2,124 
  Other countries                           1,507    2,893 
                                           67,581   53,181 
  Timing of revenue recognition 
  Goods transferred at a point in time     67,581   53,181 
                                          =======  ======= 
 4. Other income 
                                  2021     2020 
                               GBP'000  GBP'000 
  Net foreign exchange gain         13        - 
  Government grants              1,527        - 
  Other income                   1,540        - 
                               =======  ======= 
As a result of the economic impacts of the Covid-19 pandemic, a number of 
 government programmes have been put into place to support businesses and 
 consumers. Examples of such initiatives include the UK's Coronavirus Job 
 Retention Scheme. In accounting for the impacts of these measures, the Group 
 has applied IAS 20: 'Government Grants'. 
During the year to 31 January 2021, the Group recognised an amount totalling 
 GBP917,000 receivable under the UK Government's Coronavirus Job Retention 
 Scheme and an amount totalling GBP610,000 receivable under the UK Government's 
 Retail Hospitality and Leisure Grant Fund. 
 5. EBITDA reconciliation (earnings before interest, taxation, depreciation 
 and amortisation) 
 The Directors believe that adjusted profit provides additional useful information 
 for shareholders on performance. This is used for internal performance analysis. 
 This measure is not defined by IFRS and is not intended to be a substitute 
 for, or superior to, IFRS measurements of profit. The following table is 
 provided to show the comparative earnings before interest, tax, depreciation 
 and amortisation ("EBITDA") after adjusting for costs relating to IFRS 16 
 lease liabilities. 
                                                                                 2021              2020 
                                                                              GBP'000           GBP'000 
 EBITDA reconciliation 
 Profit/(loss) before income tax expense post IFRS 16                           2,646           (1,480) 
 Less: Interest income                                                           (24)              (73) 
 Add: Interest expense                                                            434               325 
 Add: Depreciation and amortisation                                             2,662             1,887 
 EBITDA post IFRS 16                                                            5,718               659 
 Less: costs relating to IFRS 16 lease liabilities                            (1,737)           (1,123) 
 EBITDA pre IFRS 16                                                             3,981             (464) 
                                                                            =========  ================ 
 6. Expenses 
                                                                       2021     2020 
                                                                    GBP'000  GBP'000 
  Profit/(loss) before income tax includes the following 
   specific expenses: 
  Cost of sales 
  Cost of inventories as included in 'cost of sales'                 44,458   36,601 
  Land and buildings improvements                                        18       22 
  Plant and equipment                                                   674      447 
  Motor vehicles                                                          3        2 
  Computer equipment                                                    213      148 
  Land and buildings right-of-use assets                              1,309    1,002 
  Plant and equipment right-of-use assets                                57       56 
  Motor vehicles right-of-use assets                                     80       65 
  Computer equipment right-of-use assets                                  5        6 
  Total depreciation                                                  2,359    1,748 
  Software                                                              303      139 
  Total depreciation and amortisation *                               2,662    1,887 
  Finance costs 
  Interest and finance charges paid/payable on lease liabilities        424      325 
  Interest and finance charges on restoration provision                  10        - 
  Finance costs expensed                                                434      325 
  Net foreign exchange loss 
  Net foreign exchange loss                                               -       25 
  Short-term lease payments                                              25       35 
  Low-value assets lease payments                                        15       18 
                                                                         40       53 
                                                                    -------  ------- 
*    Depreciation and amortisation expense is included within "administrative 
       expenses" in the Statement of profit or loss and other comprehensive 
7. Staff costs                               Consolidated 
                               2021     2020 
                            GBP'000  GBP'000 
 Aggregate remuneration: 
 Wages and salaries           9,140    7,557 
 Social security costs          772      602 
 Other pension costs            234      183 
 Total staff costs           10,146    8,342 
                            =======  ======= 
The average number of employees during the year was as follows: 
                                  2021    2020 
 Stores                            264     228 
 Warehouse                          50      54 
 Administration                     45      43 
 Marketing                          21      19 
 IT and web                         13      12 
 Management                          9       8 
 Other                               5       5 
 Average number of employees       407     369 
                                ======  ====== 
Staff costs above include Directors' salaries, social security costs and 
 other pension costs. Directors' remuneration is detailed in the Remuneration 
 report which forms part of these financial statements. 
8. Income tax expense/(benefit) 
                                                                        2021     2020 
                                                                     GBP'000  GBP'000 
 Income tax expense/(benefit) 
 Deferred tax - origination and reversal of temporary differences        258    (190) 
 Current tax adjustment recognised for prior periods                    (17)       20 
 Aggregate income tax expense/(benefit)                                  241    (170) 
 Numerical reconciliation of income tax expense/(benefit) 
  and tax at the statutory rate 
 Profit/(loss) before income tax (expense)/benefit                     2,646  (1,480) 
 Tax at the statutory tax rate of 19%                                    503    (281) 
 Tax effect amounts which are not deductible/(taxable) 
  in calculating taxable income: 
      Non qualifying depreciation                                          -       18 
      EMI share scheme exercised                                       (161)        - 
      Non-deductible expenses                                             12       54 
      Deferred tax rate change                                           (5)      (1) 
      Recognition of previously unrecognised tax losses                 (41)        - 
                                                                         308    (210) 
 Current year temporary differences not recognised                         -       20 
 Adjustment recognised for prior periods                                (17)       20 
 Unrecognised losses prior year                                         (50)        - 
 Income tax expense/(benefit)                                            241    (170) 
                                                                     =======  ======= 
                                                                  2021     2020 
                                                               GBP'000  GBP'000 
  Tax losses not recognised 
  Unused tax losses for which no deferred tax asset has 
   been recognised                                                   -      241 
                                                               -------  ------- 
  Potential tax benefit at statutory tax rates @ 19% (2020: 
   17%)                                                              -       41 
                                                               -------  ------- 
The adjustment recognised for prior periods relates to the re-estimation 
 of the 2021 losses carried forward amount of GBP2,331,000 to GBP2,591,000. 
9. Intangibles 
                                      2021     2020 
                                   GBP'000  GBP'000 
 Non-current assets 
 Goodwill - at cost                  5,802    5,802 
 Less: Impairment                    (182)    (182) 
                                     5,620    5,620 
 Software - at cost                  1,104      766 
 Less: Accumulated amortisation      (473)    (170) 
                                       631      596 
                                     6,251    6,216 
                                   =======  ======= 
 Reconciliations of the written down values at the beginning and end of the 
 current and previous financial year are set out below: 
                                            Goodwill  Software    Total 
 Consolidated                                GBP'000   GBP'000  GBP'000 
 Balance at 1 February 2019                    4,614       234    4,848 
 Additions                                         -       501      501 
 Additions through business combinations       1,006         -    1,006 
 Amortisation expense                              -     (139)    (139) 
 Balance at 31 January 2020                    5,620       596    6,216 
 Additions                                         -       338      338 
 Amortisation expense                              -     (303)    (303) 
 Balance at 31 January 2021                    5,620       631    6,251 
                                            ========  ========  ======= 
10. Property, plant and equipment 
                                                 2021     2020 
                                              GBP'000  GBP'000 
 Non-current assets 
 Land and buildings improvements - at cost      1,002    1,002 
 Less: Accumulated depreciation                 (287)    (269) 
                                                  715      733 
 Plant and equipment - at cost                  6,411    5,286 
 Less: Accumulated depreciation               (1,685)  (1,012) 
                                                4,726    4,274 
 Motor vehicles - at cost                          15       15 
 Less: Accumulated depreciation                   (8)      (5) 
                                                    7       10 
 Computer equipment - at cost                   1,271    1,062 
 Less: Accumulated depreciation                 (700)    (486) 
                                                  571      576 
                                                6,019    5,593 
                                              =======  ======= 
 Reconciliations of the written down values at the beginning and end of the 
 current and previous financial year are set out below: 
                              Land and 
                             buildings  Plant and     Motor   Computer 
                          improvements  equipment  vehicles  equipment    Total 
 Consolidated                  GBP'000    GBP'000   GBP'000    GBP'000  GBP'000 
 Balance at 1 February 
  2019                             755      2,231        12        434    3,432 
 Additions                           -      2,325         -        290    2,615 
 Additions through 
  business combinations              -        165         -          -      165 
 Depreciation expense             (22)      (447)       (2)      (148)    (619) 
 Balance at 31 January 
  2020                             733      4,274        10        576    5,593 
 Additions                           -      1,126         -        208    1,334 
 Depreciation expense             (18)      (674)       (3)      (213)    (908) 
 Balance at 31 January 
  2021                             715      4,726         7        571    6,019 
                          ============  =========  ========  =========  ======= 
11. Right-of-use assets 
                                                                                 2021              2020 
                                                                              GBP'000           GBP'000 
 Non-current assets 
 Land and buildings - long leasehold - right-of-use                            15,003            13,144 
 Less: Accumulated depreciation                                               (4,610)           (3,300) 
                                                                               10,393             9,844 
 Plant and equipment - right-of-use                                               575               575 
 Less: Accumulated depreciation                                                 (166)             (109) 
                                                                                  409               466 
 Motor vehicles - right-of-use                                                    269               246 
 Less: Accumulated depreciation                                                 (187)             (107) 
                                                                                   82               139 
 Computer equipment - right-of-use                                                 59                59 
 Less: Accumulated depreciation                                                  (33)              (28) 
                                                                                   26                31 
                                                                               10,910            10,480 
                                                                            =========  ================ 
 Reconciliations of the written down values at the beginning and end of the 
 current and previous financial year are set out below: 
                                             Land and  Plant and     Motor   Computer 
                                            buildings  equipment  vehicles  equipment             Total 
 Consolidated                                 GBP'000    GBP'000   GBP'000    GBP'000           GBP'000 
 Balance at 1 February 2019                     5,385        522        80         37             6,024 
 Additions                                      3,881          -       124          -             4,005 
 Additions through business combinations        1,580          -         -          -             1,580 
 Depreciation expense                         (1,002)       (56)      (65)        (6)           (1,129) 
 Balance at 31 January 2020                     9,844        466       139         31            10,480 
 Additions                                      1,214          -        23          -             1,237 
 Remeasurement                                    644          -         -          -               644 
 Depreciation expense                         (1,309)       (57)      (80)        (5)           (1,451) 
 Balance at 31 January 2021                    10,393        409        82         26            10,910 
                                            =========  =========  ========  =========  ================ 
12. Inventories 
                                2021     2020 
                             GBP'000  GBP'000 
 Current assets 
 Finished goods - at cost     12,481   13,453 
                             =======  ======= 
 Inventories have been reduced by GBP0.3m as a result of a product ranging 
 exercise to remove certain product lines from the Group .This write-down 
 to reflect net realisable value of these product lines was recognised as 
 an expense during the year. 
13. Trade and other receivables 
                         2021     2020 
                      GBP'000  GBP'000 
 Current assets 
 Trade receivables         99      178 
 Other receivables        524      331 
                          623      509 
                      =======  ======= 
14. Trade and other payables 
                                       2021     2020 
                                    GBP'000  GBP'000 
 Current liabilities 
 Trade payables                       3,287    4,824 
 Accrued expenses                     1,462      725 
 Refund liabilities                     102       11 
 Social security and other taxes        537      345 
 Contingent consideration                 -       50 
 Other payables                       1,353      475 
                                      6,741    6,430 
                                    =======  ======= 
15. Lease liabilities 
                               2021     2020 
                            GBP'000  GBP'000 
 Current liabilities 
 Lease liability              1,358    1,182 
 Non-current liabilities 
 Lease liability              9,773    9,334 
                             11,131   10,516 
                            =======  ======= 
16. Restoration provision 
                               2021     2020 
                            GBP'000  GBP'000 
 Non-current liabilities 
 Restoration provision          277      249 
                            =======  ======= 
Movements in provisions 
 Movements in each class of provision during the current financial year, 
 other than employee benefits, are set out below: 
 Consolidated - 2021                             GBP'000 
 Carrying amount at the start of the year            249 
 Additional provisions recognised                     18 
 Unwinding of discount                                10 
 Carrying amount at the end of the year              277 
17. Deferred tax 
                                                              2021     2020 
                                                           GBP'000  GBP'000 
 Non-current liabilities 
 Deferred tax liability comprises temporary differences 
  attributable to: 
 Property, plant and equipment                                 561      426 
 Tax losses                                                  (218)    (355) 
 IFRS 16 transitional adjustment                              (71)     (71) 
 Unapproved share options issued                              (14)        - 
 Deferred tax liability                                        258        - 
                                                           =======  ======= 
 Opening balance                           -    190 
 Charged/(credited) to profit or loss    258  (190) 
 Closing balance                         258      - 
                                         ===  ===== 
18. Share capital 
                                               2021        2020     2021     2020 
                                             Shares      Shares  GBP'000  GBP'000 
 Ordinary shares of GBP0.01 each - 
  paid                                   77,267,304  64,621,993      773      646 
                                         ==========  ==========  =======  ======= 
Movements in ordinary share capital 
 Details                Date                   Shares  GBP'000 
 Balance                 1 February 2019    64,621,993      646 
 Balance                 31 January 2020    64,621,993      646 
 Issue of shares         17 June 2020        6,500,000       65 
 Issue of shares         1 July 2020         4,500,000       45 
 Exercise of options     17 July 2020        1,645,311       17 
 Balance                 31 January 2021    77,267,304      773 
                                            ==========  ======= 
19. Share premium 
                             2021     2020 
                          GBP'000  GBP'000 
 Share premium account     31,037   26,017 
                          =======  ======= 
Movements in share premium account 
Detail                    Date               GBP'000 
 Balance                    1 February 2019     26,017 
 Balance                    31 January 2020     26,017 
 Issued during the year     17 June 2020         5,020 
 Balance                    31 January 2021     31,037 
The share premium account is used to recognise the difference between the 
 issued share capital at nominal value and the capital received, net of transaction 
20. Reserves 
                                    2021     2020 
                                 GBP'000  GBP'000 
 Share-based payments reserve         75        - 
                                 =======  ======= 
Share-based payments reserve 
 The reserve is used to recognise the value of equity benefits provided to 
 employees and Directors as part of their remuneration, and other parties 
 as part of their compensation for services. 
Movements in reserves 
 Movements in each class of reserve during the current and previous financial 
 year are set out below: 
 Consolidated                      GBP'000 
 Balance at 1 February 2019              - 
 Balance at 31 January 2020              - 
 Options granted                        75 
 Balance at 31 January 2021             75 
21. Dividends 
 There were no dividends paid, recommended or declared during the current 
 or previous financial year. 
22. Earnings per share 
                                                                 2021     2020 
                                                              GBP'000  GBP'000 
 Profit/(loss) after income tax attributable to the owners 
  of Angling Direct PLC                                         2,405  (1,310) 
                                                              =======  ======= 
                                                                   Number      Number 
  Weighted average number of ordinary shares used in 
   basic earnings per share                                     72,226,957  64,621,993 
  Adjustments for calculation of diluted earnings per share: 
       Options over ordinary shares                              1,049,867           - 
  Weighted average number of ordinary shares used in 
   diluted earnings per share                                   73,276,824  64,621,993 
                                                                ==========  ========== 
                               Pence   Pence 
  Basic earnings per share       3.33  (2.03) 
  Diluted earnings per share     3.28  (2.03) 
1,645,311 options over ordinary shares were excluded from the 2020 diluted 
 earnings calculation as they were anti-dilutive for the year. 
  23. Events after the reporting period 
  The consequences of the Coronavirus (COVID-19) pandemic are continuing to 
  be felt around the world, and its impact on the Group, if any, has been 
  reflected in its published results to date. Whilst it would appear that 
  control measures and related government policies, including the roll out 
  of the vaccine, have started to mitigate the risks caused by COVID-19, it 
  is not possible at this time to state that the pandemic will not subsequently 
  impact the Group's operations going forward. The Group now has experience 
  in the swift implementation of business continuation processes should future 
  lockdowns of the population occur, and these processes continue to evolve 
  to minimise any operational disruption. Management continues to monitor 
  the situation both locally and internationally. 
  No other matter or circumstance has arisen since 31 January 2021 that has 
  significantly affected, or may significantly affect the Group's operations, 
  the results of those operations, or the Group's state of affairs in future 
  financial years. 

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